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The outlook for MLPs is rosy, according to Elvira Scotto, a director at RBC. In a report on the...

The outlook for MLPs is rosy, according to Elvira Scotto, a director at RBC. In a report on the sector published by The Wall Street Transcript, Scotto says that thanks to low interest rates, MLPs have ready access to capital and can thus easily fund growth. This is good news for yield-starved investors as MLPs offer handsome payouts. Previously: MLPs will outperform even if rates rise.
Comments (8)
  • I like MLPs and have made really good money on MMP and some on PVR, but I fear that tax code changes are likely over the next few years and these entities will be taxed as C corporations. When that happens, expect a 35% decline in share prices and distributions.

     

    Sure, both parties are in gridlock. But, things change and a grand tax reform bill is possible, maybe even probable.
    21 Mar 2013, 05:51 PM Reply Like
  • Due to the gridlock circus that we have in Washington, I would game the chances of tax reform during the next 4 years as a very small tail risk.
    21 Mar 2013, 10:37 PM Reply Like
  • Bob, who knows what the next few years will bring, play the cards that have been dealt to you today. Change hands when the dealer changes. Look up man, there all kinds of opportunities out there to grab on to. MLP's are in the sweet spot, go with them.
    If you believe as I do, hydrocarbons are here to stay for years to come, then MLP's belong in serious energy portfolios.
    Long: numerous MLP's + REITs, BDC's, financials+++
    22 Mar 2013, 02:49 AM Reply Like
  • I'd be fine with their changing to C-Corps as most of my investable money is in IRA's and this would simplify things.
    21 Mar 2013, 06:43 PM Reply Like
  • Trying to figure out "The News Story"?? What was said?? Let's get thru this year,and not think of "the next few years". May I still be here by then!
    21 Mar 2013, 07:20 PM Reply Like
  • I am long MMP. What a great company. As far as the tax change goes, forget it. It takes billions and billions of dollars to make these great companies. That is why Pres. Reagan approved these things. If they take away the tax change, people would flee these companies like a bunch of quail heading for the timber. The only REASON the morons in D.C. would do this would be to make the U.S. fail as an energy producer.
    22 Mar 2013, 12:48 AM Reply Like
  • Have you forgotten that failure of (conventional) energy industries is a plank in the platform of one of our major political parties? You may think them "morons" but that will not stop "progress."
    23 Mar 2013, 12:03 PM Reply Like
  • The ready access to capital and the (favorable) yield curve structure are two main ingredients which assure maintaining healthy cash flow and paying steady dividends. Readily manipulating the evolving underlying investments to provide income and maintain cash flow are essential goals which I want to always monitor and assess to be continuously convinced that the dividend remains sustainable . AGNC remains one of my key holdings for the future.

     

    VTFI
    22 Mar 2013, 10:11 AM Reply Like
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